In an increasingly knowledge-driven global economy, high-quality tertiary education is more important than ever. Higher education is a major driver of economic competitiveness and ensures that national economies keep up with more technologically advanced societies.

Yet many people in South Africa never get the chance to realise their full potential through higher education, as they do not have the funds to enrol at educational institutions.

A recent study found that most African tertiary institutions are not generating enough graduates to support national economic development in the 21st century. According to the World Bank, a lack of public higher education financing was a major factor contributing to the shortage of qualified citizens.

Eduloan, South Africa’s preferred provider of student loans since 1996, helps to close this gap in access to education by offering students the opportunity to finish paying off their study loans by the time they finish studying.

This means students don't have to wait for years to save up money before they can study, during which the price of education increases and they lose ground in an increasingly competitive labour market.

Eduloan provides incredibly affordable study loans, both for working professionals and for sponsors who wish to fund their loved ones education but for whom bank loans are not an option.

Eduloan does not require an upfront deposit and all South Africans can enjoy a 10% (prime plus 1 %) interest rate, at a host of leading educational institutes countrywide, when they take out a study loan for themselves or a dependant. This is a significantly lower rate of interest than those offered by commercial banks, and has no hidden costs.

Tuition fees are only part of the expenses faced by students in furthering their education. With this in mind, Eduloan has developed the Eduxtras smart card, which allows bursary funders to pre-allocate funds and to specify how these should be spent, for example on food, books, or accommodation, in addition to tuition.

Employers who choose to fund bursaries either for their own staff or for deserving students will find Eduxtras particularly useful in ensuring that bursaries and student loans are used for the purpose they were intended for.

Michelle Branco, Chief Commercial and Marketing Officer at Eduloan, says Eduloan understands students. “That’s why we’ve developed the Eduxtras smartcard; to help them budget and manage their funding, empowering them to use the money in exactly the way it is meant to be used – furthering their education, while alleviating a huge administrative burden for the bursors.”

“In 2011, Eduloan managed over R550 million in bursary funds via Eduxtras on behalf of institutions and bursars”, says Branco.

Eduxtras may be used at 16 universities and universities of technology, as well as four national and 110 individually owned bookstores, 246 accommodation providers and 85 food merchants nationwide.

A key advantage of Eduxtras is that funders receive a full report on a yearly basis on students’ spending, giving a comprehensive picture of where their money goes to and guiding them on allocations for the following academic year. Branco says this helps to ensure transparency in education funding.

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